STRATEGIC RISK MANAGEMENT
The challenges in managing risks are multi-faceted given sharp rise in risks, their volume, interrelationships and impact. Many of the techniques used by Boards and Senior Managers are inconsistent with the realities on the ground, and they lack alignment besides being largely ad hoc. Enterprise risk management is an approach that has been in use and has now been institutionalized, with its top-down holistic approach. Organizations that institutionalize it increase the likelihood that there would be effective risk management systems, thus protecting and enhancing stakeholder value. However, risks are dynamic, multi-level and multi-dimensional. Boards and Senior executives must regularly monitor the strategic risks, and satisfy themselves that there is some level of comfort the organization is not over-exposed. How can the board and senior managers identify and have strategic and operational risks identified, reported, mitigated and managed on timely basis? What is the interface between robust risk management practices, strategy execution, health and wealth of the organization?